As the result of an increase in the price of capital, the demand for labor would ________, the supply of labor would ________, and the quantity of labor hired would ________
A) decrease; remain the same; decrease B) decrease; decrease; decrease
C) decrease; increase; remain the same D) increase; remain the same; decrease
A
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The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage. Which of the following would push the night watchman's wage higher?
a. The job does not require specialized skills. b. The job is easy. c. The job is incredibly dull. d. The job has minimal risk of injury.
The difference between new classical theory and new Keynesian theory is that
A) in new classical theory wages are assumed to be flexible, and in new Keynesian theory wages are assumed to be somewhat inflexible. B) in new classical theory wages are assumed to be somewhat inflexible, and in new Keynesian theory wages are assumed to be flexible. C) adaptive expectations is the dominant expectations theory in new classical theory, and rational expectations is the dominant expectations theory in new Keynesian theory. D) in new Keynesian theory the short-run aggregate supply curve is vertical, and in new classical theory the short-run aggregate supply curve is upward sloping.